China is scouring the US for tungsten.

Seeking additional supply sources.

The aggressive hunting by Chinese traders has sparked fierce price competition with American businesses, while also raising calls to ban the export of resources that are critical to national security.

A tungsten processing facility in China. Photo: VCG

American suppliers have been receiving a constant stream of calls from Chinese traders seeking tungsten, while US businesses are at a disadvantage as their Asian rivals are willing to pay five times the usual price.

Since the beginning of 2025, Chinese scrap metal buyers have been aggressively seeking tungsten in the United States. This situation stems from a scarcity of supply outside of China, due to declining production while demand from the aerospace, defense, and toolmaking industries remains high. China imposed export restrictions on tungsten and other strategic minerals early last year, while also cutting domestic mining quotas.

Supported by government subsidies and lower labor costs, Beijing has dominated the global tungsten industry for decades. China now accounts for over 50% of tungsten mining/refining production and approximately half of the world 's consumption.

For many years, China has banned the import of tungsten scrap, citing environmental protection reasons. However, tungsten in other forms can still be imported.

China views the US as an ideal "hunting ground" due to its large market size and the fact that it is home to many of the world's leading manufacturers of high-quality machinery.

Some argue that China's long-standing tungsten mines are declining in productivity, forcing the country to seek new sources of supply.

Tungsten scrap typically originates from used industrial tools such as drill bits and mining equipment. This material can be crushed and chemically treated to be recycled into tungsten powder or tungsten carbide, before being used to manufacture new machinery and tools.

America is in a dilemma.

Tungsten is widely used in military applications, including ammunition and missiles. Tungsten inventories in the U.S. were low even before the Iran war, and businesses typically don't stockpile large quantities of the metal.

According to Argus Media, tungsten prices in the US have increased by more than 200% since May 2025, while tungsten scrap prices have risen by as much as 350%.

The U.S. has not yet issued regulations prohibiting the sale of tungsten to buyers intending to export it abroad. A White House official said the Trump administration is committed to restoring the domestic mining industry and ensuring the security of the U.S. supply chain. Amidst the escalating race for resources, the U.S. government will invest $1.6 billion in a tungsten mining project in Kazakhstan.

The U.S. has had no commercially active tungsten mines since 2015 and imports more than 6,000 tons of processed tungsten annually. Therefore, the Trump administration identified reducing reliance on Chinese tungsten supplies as a strategic priority. Banning tungsten scrap exports could also support this effort. However, Washington lacks the processing capacity to fully utilize its existing scrap resources.

HANH NGUYEN (According to Financial Times, NBC News)

Source: https://baocantho.com.vn/trung-quoc-lung-suc-vonfram-o-my-a206223.html